icsw global conference, brasilia 16-19 july, 2006 entry points for icsw to promote social justice in...

ICSW Global Conference,

Brasilia 16-19 July, 2006

Entry points for ICSW to promote Social Justice in PRS-processes

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ICSW Global Conference in Brasilia 16-19 July, 2006

Entry points for ICSW to promote Social Justice in

national Poverty Reduction Strategy -processes

Timo Voipio, MFA-Finland

People cannot be developed; they can only

develop themselves. [Julius K. Nyerere]




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Disclaimer:

‘BRAINSTORMING’, not official policies of

MFA-Finland




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The theme of this workshop:

Poverty ReductionUnderstood very broadly here:

= not only MDG-1a ($1/income poverty)

= not only the MDGs

= multi-dimensional human and social wellbeing = increase of social justice

= sustainable development, with balance between the ECON / SOC / ENV dim’s

PovRed requires comprehensive SocPol




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SOCIALSOCIALECONOMICECONOMIC

The ECON & SOC & ENV should be in balance: ’Society for All’

ENVIRONMENTENVIRONMENT




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UN: Millennium Development Goals (MDGs, 2000 by 2015)

1. Reduction of income poverty and hunger (share of people living on < $1/day & hungry halved by 2015)

2. Primary education for all 3. Gender equality and women’s rights 4. Child (<5) mortality 5. Maternal mortality 6. Fight against HIV/AIDS, malaria, TB, etc. 7. Environmental sustainability 8. Global partnership (incl. trade, debt relief, aid)

POVERTY is multi-dimensional (DAC-01)

SECURITYrisk, vulnerability

social protection/ social risk

management (SRM) POLITICALrights

freedoms voice & influence

SOCIO-CULTURAL

statusrespect, dignity

ECONOMICconsumptionincome

assets

HUMANhealth

educationhunger, thirst

GENDER +

ENVIRON-MENT




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The World Bank agreed in WDR-2000:Poverty is MULTI-Dimensional

EMPOWERMENT

• Responsive Public

Administration

• Rule of Law

• Decentralization

• Eliminating Gender

Discrimination

• Social Fragmentation

and Conflict

• Building Social Capital

SECURITY

• Social Risk Management

- Household Responses

- Policy Responses

Reducing Vulnerability to

- Economic Crises

- Natural Disasters

INTERNATIONAL ACTIONS

• Market Access in Rich Countries

• Reducing Global Volatility

• Pro-Poor Intn’l Public Goods

• Voice for the Poor in Global Forums

• Making Aid Effective in

Reducing Poverty

• Relieving the Debt Burden

OPPORTUNITY

• Pro-Poor Growth

• Inequality and Redistribution

• Markets

• Assets

• Governance and

Accountability




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Change of approaches in aid for poverty reduction:

Projects SAPs BS for PRS Donor-driven projects 60s-90s Structural Adjustment Programmes (SAPs) by

WB/IMF 80s-90s+ proliferation of bilateral projects (transaction costs)

2000s Budget Support (BS) to support the implementation of national Poverty Reduction Strategies (PRS) by WB + IMF + 13-17 bilaterals Challenge: Policy dialogue on comprehensive:ECONPOL + SOCPOL + ENVPOL = SustDev




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The social governance of globalization starts at home:

National Global Social PolicyRich country experience:

INDUSTRIALIZATION – Prosperity for All?– Social costs– Inequities – Environmental costs

GLOBALIZATION– Prosperity for All?– Social costs– Inequities– Environmental costs

19th & 20th centuries:

Social policies !

Equalization policies! Environmental policies !

2000s:MFAF / ILOGlobal social policy !

Global equalization!Global environmental policies !




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PRS: Different from Structural Adjustment Programmes ?

SAPs: Conditionality imposed from above: Macro policy reform in exchange for large loans

SAPs: IMF & WB/ ’Washington Consensus’: neo-liberal ”one-size-fits-all” ECONOMIC policy package

SAPs: Criticism from the SOCIAL perspective: SAPs ”with a human face” & Human development

(Unicef 1987, UNDP-HDR 1990 & NGOs, etc.) PRS: alternative (more social) economics?

(E.g. ’Growth Through Equity’,’Pro-Poor Growth’, ’Decent Work for All’, ’Policy Space’ & Industrial Economics)

Or: The 3 dimensions of Sustainable Development in balance: ECONOMIC + SOCIAL + ENVIRONMENTAL Multi-dimensional + multi-disciplinary




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The Global Agenda in 2006: • Copenhagen Social Summit 95 PovRed

+ Employment + Social inclusion• WB+IMF: 1999 PRSP PRS • Millennium Summit 2000 MDGs• Paris Declaration Harmonisation/Aid effectiveness

• World Summit Outcome Sept-05 = WSO + ”Development Resolution”, UN-GA 300606

• ECOSOC-06 + CSocD-07: Back to Copenhagen:Full Prod.Empl. & Decent Work for All

+ Decent Work Country Programmes (ILO/EU)

• ICSW + UN-DESA + UNDP: Soc. Integr./Inclusion




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Copenhagen Social Summit-95:

FULL SOCIAL

PRO- INTEGRATION /

DUCTIVE S.INCLUSION /

EMPLOY- S.COHESION

MENT

POVERTY

REDUCTION

But the Econ/Social tension remains:

SECURITYrisk, vulnerability

social protection/ social risk

management (SRM) POLITICALrights

freedoms voice & influence

SOCIO-CULTURAL

statusrespect, dignity

ECONOMICconsumptionincome

assets

HUMANhealth

educationhunger, thirst

GENDER +

ENVIRON-MENT




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In reality, in country level work, the economic perspective (growth & efficiency)

dominates. Why?




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UNUNWBWB

(& IMF)(& IMF)

Part of the reason is the imbalance between the WB(& IMF) vs. UN at country level




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UN + WB:UN + WB:SOCIALSOCIAL

WB & UN: WB & UN: ECONOMICECONOMIC

In principle, both WB & UN should promote a balanced sustainable dev’t agenda on

RIGHTS/SOCIAL JUSTICE

ENVIRONMENTENVIRONMENT




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Min.of Social Min.of Social & Labour, & Labour, unions, unions,

consumersconsumers

Min. of Finance, Min. of Finance, Central Bank, Central Bank,

Business & Empl. Business & Empl. associationsassociations

Equally, at the national level there should be a balance between the ’ECONOMIC’ and ’SOCIAL’ ministries

& civil society representatives

Min.of Env / Agric. / Natural Min.of Env / Agric. / Natural resourcesresources




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Min.of Social Min.of Social & Labour, & Labour, unions, unions,

consumersconsumers

Min. of Finance, Min. of Finance, Central Bank, Central Bank,

Business & Empl. Business & Empl. associationsassociations

But: Often the ECON perspective gets a priority in national policy making




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WBWBnon-non-

economistseconomistsWBWBeconomistseconomists

Within WB the ECON dominates over the SOC: The WB has 10.000 economists &

only few hundred non-economists




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LabourLaboureconomists economists & industrial& industrialpolicy, etc.policy, etc.

Orthodox Orthodox ’’neo-liberal’neo-liberal’

macromacroeconomistseconomists

And: Among the WB-economists one school of thinking dominates over alternatives




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UN:UN:grants outside grants outside the BS-framethe BS-frame

WB-loans WB-loans + Bilaterals’ grants:+ Bilaterals’ grants:

PRSP PRSP + Budget support+ Budget support

A key additional factor: Bilaterals strongly aligning to the WB-dominated dev’t agenda




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IMF & IMF & World Bank World Bank & Bilaterals& Bilaterals

economic policyeconomic policy

An additional factor: Fragmented UN

UNDPUNDP

WHOWHO UN-AidsUN-Aids

ILOILO

UnicefUnicef

WFPWFP

HabitatHabitat

UnifemUnifem

UN: Fragmented UN: Fragmented social policysocial policy




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WB + WB + Min.of Finance &Min.of Finance &

IMF + IMF + Central BankCentral Bank

Fragmented UN leads to fragmented national social policies

UNDP +UNDP +PMOPMO

WHO + WHO + Min.of Min.of HealthHealth

UN-Aids +UN-Aids +National Aids National Aids

CouncilCouncil

ILO + ILO + Min.ofMin.ofLabourLabour

Unicef +Unicef +Min.of Min.of

Children Children & Women& Women

WFP +WFP +Min.of Agric.Min.of Agric.

Habitat + Habitat + Min.of Min.of

HousingHousing

Unifem + Unifem + Women’s Women’s

OfficeOffice

UN: Fragmented UN: Fragmented social policysocial policy




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’’One UN’One UN’+ WB + WB

+ bilaterals+ bilaterals

WB + IMFWB + IMF+ bilaterals+ bilaterals

Efforts to improve the ECON/SOC balance:

UN-Reform (at global and national levels)




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IMF & IMF & World BankWorld Bank

- economic policyeconomic policy

Efforts to improve the ECON/SOC balance (e.g. Nordic TF-ESSD in WB)

UNDPUNDP

WB/WB/SD+SPSD+SP UN-AidsUN-Aids

ILOILO

UnicefUnicef

WFPWFP

HabitatHabitat

UnifemUnifem

Networked UN + Networked UN + WB into social WB into social

policypolicy

WHOWHO

WB/SDWB/SD

WB/SPWB/SP




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Arusha Conference Dec-05 (WB): New Frontiers of Social Policy in a

Globalizing World Organised by WB Social Dev’t Dept (Anis Dani) Funding from Finland, Sweden, Norway, UK ’Authoritative speakers’ from US-universities (?) Equity & social policy? social dimensions of /

perspective to all policies: SOC.sectors (edu/health/social protection) + SOC dimensions in e.g. infra, agric., PSD, macro-

economic policy, etc. On all levels: local + national + global Greater attention to employment (livelihoods), social

integration & institutions




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Copenhagen Social Summit-95:

FULL SOCIAL

PRO- INTEGRATION /

DUCTIVE S.INCLUSION /

EMPLOY- S.COHESION

MENT

POVERTY

REDUCTION




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World Bank/Anis Dani 2005:

LIVELI- SOCIETAL

HOOD CULTURE

SECURITY

INSTITUTIONS &

ACCOUNTABILITY




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WORLD BANK 2004Social Development Strategy

INCLU- COHE-

SION SION

RIGHTS?

ACCOUNTABILITY




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Arusha Declaration: New Frontiers -1

Transformation of subjects and beneficiaries into citizens

universal rights & responsibilities

Middle-class by-in: Build alliances between the poor and the not-so-poor

Role of State: effective & accountable

Recognizing power relations & institutions Capacity of states revenue mobilization




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Arusha Declaration: New Frontiers -2

Social dimension/Equity in infra, utilities, social services: educ/health/SP

Market access for the poor Fiscal policies Migration (internal/external) Citizens organizations/social partners Understanding history, culture, etc. Social Policy at all levels: local, national, global Multi-disciplinarity




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Strenghen theStrenghen the’’social perspective’social perspective’

in World Bank?in World Bank?

But: Arusha left ’uneasy feelings’ among Nordics/Africans/UN-people/ ICSW:_ Should we (donors) partner with & invest in WB? UN? CSOs?

UNDPUNDP

WB/WB/SD+SPSD+SP UN-AidsUN-Aids

ILOILO

UnicefUnicef

WFPWFP

HabitatHabitat

UnifemUnifem

Strenghen One-UNStrenghen One-UNglobally & locally?globally & locally?

WHOWHO

WB/SDWB/SD

WB/SPWB/SP




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ILO bridges the ECON & the SOC:

DECENT WORK FOR ALLDECENT WORK FOR ALL




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SOCIALSOCIAL-rightsrights

- protectionprotection- dialoguedialogue

& gender equality& gender equality

Employment Employment generation generation

& entre-& entre-preneurshippreneurship

UN-ECOSOC Main Theme 2006:DECENT WORK FOR ALLDECENT WORK FOR ALL

ILO/EU: Decent Work Country Programmes (DWCP)

EMPLOY-MENTEnabling

environment, Entrepreneurship,

Skills, Productivity, Competivity

SOCIAL PRO-

TECTIONExtending

social protection, incl. to those in the informal sector

SOCIAL DIALOGUE

Building social concensus on

major policy lines e.g. through

tripartite negotiations.

RIGHTSFundamental

Principles and Rights at Work

e.g.

ILO-Conventions

To become key part of national To become key part of national PRSsPRSs




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rights-basedrights-basedresidence-residence-

based based universalismuniversalism

efficiency-efficiency-oriented oriented

means-testedmeans-testedtargetingtargeting

But it’s not only a choice between the WB and the UN, but also choices within

SocPol, e.g. between:




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On-going efforts to improve the ECON/SOC balance -1

1) ECOSOC 7/06 + CSocD 2/07(a)Decent Work for All + DW Country

Programmes

(b)UN-Reform: SG’s High Level Coherence Panel 9/06

’One UN’ at country level: e.g. Vietnam country directors

ILO + EC: Decent Work Country Programs (DWCP)




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2) AU Soc.& Empl. Policy strategy & other regions

3) EU Consensus + Sust.Dev’t + Decent Work

4) DAC/POVNET: PPG Social Policy, incl. SocPr

5) SDAN = Social Development Advisers’ Network

6) PSIA-network (Poverty and Social Impact Ass.)

CSA (= Country Social Assessment)

+ ’Drivers of Change’ + ’Power Analysis’




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7) NOR+FIN: WB TF-ESSD (with WB-departments for SD+SP+POV+ENV)

8) Support to ILO’s country-level work (DWCPs): SWE, NOR, UK, NL, GER, POR, IRE, EC

9) Balancing the ’Arusha Process’: UNRISD/Sweden/Finland 30 Oct – 2 Nov

10) Role and contributions of ICSW (global, regional, national) in all of this ???




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New roles and skills needed for donors and CSO-people, e.g. ICSW:

(a) Poverty situation monitoring

(b) Stakeholder analysisWho is participating? Influencing?

(c) Public financial management?

- will & skill?




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RV/SP - Key messages to donors:1) R&V causes poverty and failing growth:

– ex-post impacts of shocks– ex-ante or behavioral impact of risk: low return choices

2) The economic and social return to social protection is very high - not just in terms of social policy and equality, but also in growth and multidimensional poverty reduction

3) The analysis of risk and vulnerability in public policy (in PRS/PMS/PAF etc.) is possible and desirable

4) Time for more experimenting: try out schemes. 5) RV/SP is multisectoral: Donors need to know

and partner with the coordinating SP-ministry + help convince the MoF.




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RV/SP: Practical Country-Level

Instruments and Approaches used by Various Agencies

• Unconditional Cash Transfers (e.g. Kalomo)• Conditional Cash Transfers• Food for Education (e.g. Bangladesh)• Micro-finance and micro-insurance• Social Health Insurance• Employment Support and Public Works• Social Pension Insurance




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How to strengthen the social dimension of the PRS cycle?

Policy formulation

Communi-cation

Policy implemen-

tation

Monitoring and evaluation

1. Poverty analysis

Annual cycle of steps: Policy & budgeting

priorities are based on evidence from learning (M&E)

Budgeting




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Communi-caon


BudgetingPolicy formulation

The social dimensions of PRS?

1. Baseline data & diagnostics

Poverty analysis

Poverty Monitoring System (PMS), incl. HBS, admin.data,PPA, focused studies

Poverty profiles Poverty mapping

-Capacity building for statistics & analysis

Policy implemen-

tation




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Budgeting

2. Quality of the participatory process?

Communication

Policy implementation


Poverty analysis

Open, democratic process? Including Parliament?

Sector ministries?(Labour, Soc.&Health, Educ.)

Private sector?, Unions? CSOs? Media? Donors, IFIs?

1. Poverty analysis

Policy formulation




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1. Poverty analysis

3. Ex ante impact assessment

PSIA

Communication

Policy implementation


incl.Poverty and Social Impact Assessment

of major ’IFI-imposed’ reforms and programmes, incl. employment,

regional pattern, gender, and the most vulnerable population groups

Budgeting




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Policy implemen-

tation


Budgeting

4. Results-based mngt of budget aid

CommunicationPoverty analysis

Performance AssessmentFramework

- Conditions of budget aid. - Too many ’triggers’ need to simplify.

- What are pro-poor macro-policies?- if you have arguments, you can influence

1. Poverty analysis

PAF




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Financing

Communi-cation

1. Poverty analysis

Policy formulation

6. Budget, expenditure & ’leakage’ monitoring

ExpenditureM&E

Budget guidelines + PER (Public Expenditure Review)

&PETS (Public Expenditure Tracking Surveys)

Broadly participatory




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Policy formulation


Policy implemen-

tation

Financing

7. Role of Social Policy?

CommunicationPoverty analysis

PRSP-dialogue: From ad hoc safety nets to

a comprehensive social policy

-WB: Risk & vulnerability assessments, RVA National Social Risk Mngt Strategies

(social risk prevention/mitigation/coping)- Social Budgeting, Gender

Budgeting, Regional Policy e.g.

icsw global conference, brasilia 16-19 july, 2006 entry points for icsw to promote social justice in...

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